Mary said "A good in shortage is scarce."
David said" A scarce good is not necessarily a good in shortage."
Do you agree with Mary or David? Explain your answer.
To determine whether I agree with Mary or David, let's analyze their statements one by one.
Mary said, "A good in shortage is scarce." This statement implies that if a good is in shortage, it can be considered scarce.
David, on the other hand, said, "A scarce good is not necessarily a good in shortage." This statement suggests that just because something is scarce, it does not mean it is in shortage.
Now, let's look at the definitions of these terms:
- Scarce: Something that is scarce means there is a limited quantity available relative to the demand or desire for it.
- Shortage: A shortage refers to a situation where the quantity demanded for a good exceeds the quantity available.
Based on these definitions, we can conclude that Mary's statement is correct. If there is a shortage of a particular good, it means that the quantity demanded is greater than the quantity available. This scarcity in availability is what constitutes a shortage. Therefore, a good in shortage can be considered scarce. David's statement, however, is incorrect since a scarce good can indeed be in shortage.
Therefore, I agree with Mary's statement that "A good in shortage is scarce."